Document from CIS Legislation database © 2003-2021 SojuzPravoInform LLC

LAW OF THE REPUBLIC OF UZBEKISTAN

of April 26, 2012 No. ZRU-327

About family entrepreneurship

(as amended on 09-11-2020)

Accepted by Legislative house on March 16, 2012

Approved by the Senate on March 23, 2012

Chapter 1. General provisions

Article 1. Purpose of this Law

The purpose of this Law is regulation of the relations in the field of family entrepreneurship.

Article 2. Legislation on family entrepreneurship

The legislation on family entrepreneurship consists of this Law and other acts of the legislation.

If the international treaty of the Republic of Uzbekistan establishes other rules, than those which are stipulated by the legislation the Republic of Uzbekistan about family entrepreneurship then are applied rules of the international treaty.

Article 3. Family entrepreneurship

Family entrepreneurship are the initiative activities performed by family members for the purpose of income acquisition (profit) on the risk and under the property responsibility.

The family entrepreneurship is based on voluntariness of his participants.

The family entrepreneurship can be performed with education or without formation of legal entity.

Form of business of the family entrepreneurship performed with formation of legal entity is the family company.

The family entrepreneurship without formation of legal entity is performed according to the procedure, established by the legislation. At the same time subjects of family entrepreneurship without formation of legal entity have the right to hire up to three permanent employees with the conclusion with them the employment contract, and also to attract as members of the subject of family entrepreneurship without formation of legal entity of other close relatives who reached working-age including spouses of children and grandsons, brothers and sisters, their spouses and children.

Article 4. Family company

Family company is the small business entity created by his participants on voluntary basis based on the common property which is in equity or joint property of members of family company, and also property of each of members of family company for implementation of production and sales of goods (works, services). Activities of family company are based on personal labor of his participants. The family company is one of forms of business of subjects of entrepreneurship.

The family company can perform activities only with formation of legal entity. The family company can have the isolated property in property, on its own behalf acquire and perform the property and personal non-property rights, perform duties, to be claimant and the defendant in court.

The family company answers for the obligations all property belonging to it on which according to the law collection can be turned.

Members of family company according to the legislation bear subsidiary responsibility the property belonging to them according to obligations of family company in case of insufficiency of property of the company.

The family company can perform employment of workers according to the legislation.

Total number of members of family company and its hired employees cannot exceed the annual average number of employees of small business entities established by the legislation. At the same time the minimum number of members of family company shall be at least two people.

The family company shall have complete and has the right to have the reduced trade name. The full trade name of family company shall contain its full name and the words "oilaviy korxona". The reduced trade name of family company shall contain its abbreviated name and the words "oilaviy korxona" or abbreviation of OK.

Article 5. Members of family company

The head of the family, his spouse (spouse), the children and grandsons, parents, other relatives who reached working-age (the spouse of children and grandsons, blood both stepbrothers and sisters, their spouses and children, uncles and aunts) can be members of family company. Only capable persons can be members of family company.

Officials of state bodies, and also other persons who the legislation are forbidden to be engaged in business activity cannot be members of family company.

The member of one family company cannot be at the same time the member of other family company.

Article 6. Head of family company

The family company in relations with legal entities and physical persons is represented by its Chapter.

One of his participants to whom all members of family company unanimously grant the participation right in business conduct from their name can be the head of family company.

In case of temporary disability or long absence of the head of family company he the family company having the right to authorize in coordination with other members of one of them temporarily to carry out the obligations.

Chapter 2. Creation of family company and its state registration

Article 7. Procedure for creation of family company

The family company is created by his participants.

The family company is created sine die if other is not provided by its foundation agreement.

Article 8. General meeting of members of family company

General meeting of members of family company is the supreme body of management of family company.

Treat powers of general meeting of members of family company:

election (appointment) and release of the head of family company;

election of the head of family company;

determination of types of activity of family company;

consideration and solution of question of change of list of participants of family entrepreneurship;

determination of authorized capital of family business and modification of its size;

consideration of the annual statement of the head of family company about financial and economic activities of family company;

decision making about profit distribution of family company according to the foundation agreement;

decision making about making of large deals with property of family company.

The decision and other questions provided by the foundation agreement can be carried to powers of general meeting of members of family company.

Article 9. Foundation agreement of family company

The constituent document of family company is the foundation agreement signed by all his participants.

Contain in the foundation agreement of family company:

surname, name, middle name and residence (address) of the head of family company and other members of family company;

size of authorized capital of family business;

procedure for determination of the property brought by members of family company in its authorized capital;

trade name of family company and data on its location (postal address);

procedure for profit distribution, received from business activity, between members of family company, and also property in case of liquidation of family company;

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